If journalism’s more vital traditions of investigating corruption and synthesizing complex topics are going to be restored, it will never be at the expense of the personal, the sexual, the venal, or the sensational, but rather through mastering the kind of storytelling that understands that none of those things exists in a vacuum. For instance, perhaps the latest political sex scandal is not simply another installment of the unrelenting narcissism and sense of invincibility of people in power. Most of the journalists writing about it have—as we all do—some understanding of the internal conflicts that lead to personal failure. By humanizing journalism, we maybe can begin to develop a mutual trust between reader and writer that would benefit both.

What I’m talking about is, of course, a lot easier to do with the creative liberties afforded a blog—one’s humanity is inescapable when one commits to blogging all day for a living.

Transactions entered into as the mortgage market fizzled may turn out to have been perfectly legal. Nevertheless, they have raised concerns among investors and analysts about the extent to which a variety of Wall Street firms put their own interests ahead of their clients’.

“Now it’s all about the score. Just make the score, do the deal. Move on to the next one. That’s the trader culture,” said Cornelius Hurley, director of the Morin Center for Banking and Financial Law at Boston University and former counsel to the Federal Reserve Board. “Their business model has completely blurred the difference between executing trades on behalf of customers versus executing trades for themselves. It’s a huge problem.”

Oftentimes people reach the conclusions that conservatives might support this or that by the erroneous method of pretending that conservatives believe in the stated reasons for their policy positions. It seems to me that private views of wonks aside in practice the conservative political movement simply opposes anything that would increase government revenue and/or be bad for rich people.

5. The Tyranny of New York (cont). Continued from last week, many voices around the interwebs weighed in on the conversation started by Conor Friedersdorf on the tyranny of New York in media and culture. There’s a lot of good pieces to read on this — but the 2 I will recommend are this response in the New Yorker by Amy Davidson and this follow-up by Friedersdorf himself. Davidson, as an aside mentions an E. B. White essay “Here Is New York” that I now need to read:

(Friedersdorf mentions “living vicariously through” E. B. White, who once wrote that there were three New Yorks, that of the native, the commuter, and the newcomer from smaller American places, and that “Of these trembling cities the greatest is the last—the city of final destination, the city that is a goal…Commuters give the city its tidal restlessness, natives give it solidity and continuity, but the settlers give it passion.” But I’ve never really bought that, as matchless as many of White’s descriptions of the city are, maybe because, as a native, I feel no shortage of passion, and don’t much like being called solid. And, again, for many of the most interesting newcomers, this is an entry point to America, not the “final destination.”)

This is a busy season for me — but there should be some more substantive blog posts next week…

1. The Obama 20-somethings. Ashley Parker for the New York Times Magazine profiles “all the Obama 20-somethings” in an interesting profile of the new crowd in D.C. of smart, highly educated, highly motivated, civic-minded, young Obama staffers.

The lone pro-gun lawmaker to engage in the fight was the fearless Lindsey Graham (R-S.C.), who rolled his eyes and shook his head when Lieberman got the NYPD’s Kelly to agree that the purchase of a gun could suggest that a terrorist “is about to go operational.”

“I’m not so sure this is the right solution,” Graham said, concerned that those on the terrorist watch list might be denied their Second Amendment right to keep and bear arms.

“If society decides that these people are too dangerous to get on an airplane with other people, then it’s probably appropriate to look very hard before you let them buy a gun,” countered Bloomberg.

“But we’re talking about a constitutional right here,” Graham went on. He then changed the subject, pretending the discussion was about a general ban on handguns. “The NRA — ” he began, then rephrased. “Some people believe banning handguns is the right answer to the gun violence problem. I’m not in that camp.”

Graham felt the need to assure the witnesses that he isn’t soft on terrorism: “I am all into national security. . . . Please understand that I feel differently not because I care less about terrorism.”

There’s a pretty hilarious double standard here about the rights of gun owners. Remember, Graham is one of the people who wants the government to be able to take anybody it believes has committed an act of terrorism, citizen or otherwise, and whisk them away to a military detention facility where they’ll have no rights whatsoever. No potential worries for government overreach or bureaucratic error there. But if you’re on the terrorist watch list, your right to own a gun remains inviolate, lest some innocent gun owner be trapped in a hellish star chamber world in which his fun purchase is slowed by legal delays.

Sanchez goes through a list of bogus or overhyped stories that have consumed Fox and the right-wing blogosphere: ACORN, Climategate, Obama’s supposed Muslim allegiance, and whether Bill Ayers wrote Obama’s memoir. Conservatives trapped in this feedback loop, he notes, become “far too willing to entertain all sorts of outlandish new ideas—provided they come from the universe of trusted sources.” When you think you’re being suspicious, you’re at your most gullible.

5. Saban. Connie Bruck in the New Yorkerprofiles Haim Saban, best known for bringing the Mighty Morphin Power Rangers to the United States — but who made much of his fortune licensing the rights to cartoon music internationally. As a side hobby, he tries to influence American foreign policy towards Israel. He doesn’t come off very well in the piece, but at least this one observation seems trenchant to me at first glance:

Saban pointed out that, in the late nineties, President Clinton had pushed Netanyahu very hard, but behind closed doors. “Bill Clinton somehow managed to be revered and adored by both the Palestinians and the Israelis,” he said. “Obama has managed to be looked at suspiciously by both. It’s not too late to fix that.”

For almost all Republicans, the point of labeling Obama socialist is not to signal that he’s continuing the philosophical tradition of Roosevelt, Eisenhower, Kennedy, Johnson, Nixon, Carter and Clinton. The point is to signal the opposite: that Obama embodies a philosophy radically out of character with American history. Republicans have labeled Obama’s agenda as “socialism” because the term is widely conflated with Marxism, even though Goldberg concedes they are different things, and because “liberalism” is no longer a sufficiently scary term. Republicans endlessly called Bill Clinton a liberal, Al Gore a liberal — the term has lost some of its punch. So Obama must be something categorically different and vastly more frightening.

Goldberg is defending the tactic by arguing, in essence, that liberalism is a form of socialism, and Obama is a liberal, therefore he can be accurately called a socialist. But his esoteric exercise, intentionally or not, serves little function other than to dress up a smear in respectable intellectual attire. [my emphasis]

Two organizers of the Republican groups even made pilgrimages earlier this year to pick the brain of John Podesta, the former Clinton White House chief of staff who, in 2003, founded the Center for American Progress and was a major proponent of Democrats developing the kind of infrastructure pioneered by Republicans.

And of course, that right wing infrastructure was meant to imitate the left wing policy-media infrastructure of the left — the Brookings-New York Times axis. The whole imitation of imitation of imitation of imitation — spawning more and more organizations — reminds me a bit of those old Mad magazine comic strips:

8. The Underdog. Daniel Engber in Slate explores the underdog effect and various scientific studies of the underdog effect, including how it affects expectations:

The mere act of labeling one side as an underdog made the students think they were more likely to win.

Not to put too much pressure on Lindelof and Cuse, but the future of broadcast television will to some extent be influenced by what you give us over these next few weeks.

10. Julián Castro.Zev Chafets of the New York Times Magazineprofiles Julián Castro, mayor of San Antonio, Texas, and one of the up-and-coming Democrats. The article entirely elided his policy ideas or and barely mentioned his political temperament — but was interesting nevertheless.

Data Warfare. Marc Ambinder got hold of Catalist’s after-action report on the 2008 elections – describing how effective the Democrats were in pushing their voters to vote. According to the report, the combination of the effectiveness of data targeting and the pull of Obama’s candidacy made the difference in at least four states: Ohio, Florida, Indiana in North Carolina.

The president wasn’t vilified on the streets on Sunday as he has been recently. We are not attacking the president; we are simply demanding he do what he promised to do and supporting the troops who do not have the luxury of deciding to wait before they risk their lives for us.

We know it isn’t easy; but the Democrats need to know we weren’t kidding. You cannot summon these forces and then ask them to leave the stage. We won’t.

Ironically, her familiarity with the data, combined with her unrecognizable interpretation of it, makes it nearly impossible to combat McCaughey’s claims in a traditional debate. Her standard m.o. (as “Daily Show” host Jon Stewart recently experienced) is to greet each bit of contradictory evidence by insisting that her questioner is poorly informed and should take a closer look at paragraph X or footnote Z. When those sections don’t support her interpretation, she continues to throw out page numbers and footnotes until the mountain of data is so high as to obscure the fact that none of the numbers add up to what she has claimed.

She’s among the best in the business at the Big Lie: not the dull claim that health-care reform will slightly increase the deficit or trim Medicare Advantage benefits, but the claim that it will result in Death Panels that decide the fate of the elderly, or a new model of medical ethics in which the lives of the old are sacrificed for the good of the young, or a government agency that will review the actions of every doctor. McCaughey isn’t just a liar. She’s anexciting liar.

Summers. Ryan Lizza profiles Larry Summers for the New Yorker. Read the piece. This excerpt isn’t typical of the approach of the Obama team that the article describes, but it touches on something I plan on picking up later:

Summers opened with a tone of skepticism: The future of activist government was at stake, he warned. If Obama’s programs wasted money, they would discredit progressivism itself. “I would have guessed that bailing out big banks was going to be unpopular, and bailing out real companies where people work was going to be popular,” he said. “But I was wrong. They were both unpopular. There’s a lot of suspicion around. Why this business but not that business? Is this industrial policy? Is this socialism? Why is the government moving in?”

And yet the A.I.G. F.P. traders left behind, much as they despise him personally, refuse to believe Cassano was engaged in any kind of fraud. The problem is that they knew him. And they believe that his crime was not mere legal fraudulence but the deeper kind: a need for subservience in others and an unwillingness to acknowledge his own weaknesses. “When he said that he could not envision losses, that we wouldn’t lose a dime, I am positive that he believed that,” says one of the traders. The problem with Joe Cassano wasn’t that he knew he was wrong. It was that it was too important to him that he be right. More than anything, Joe Cassano wanted to be one of Wall Street’s big shots. He wound up being its perfect customer.

2. Peace With the Islamists. Amr Hamzawy and Jeffrey Christiansen have a thought-provoking, and somewhat discomfiting piece, in Foreign Policy suggesting that America make peace with non-violent Islamist groups – pointing out that many of them actually rely on America’s support for democracy for their success in a region of the world dependent on America and filled with dictatorships, and pointing out the signs that many of these groups are open to such a peace offer.

6. Shirsky on the Future of Journalism. Clay Shirsky has an excellent post over at Cato Unbound discussing without really predicting the future of journalism. As always with Shirky, thought-provoking and worth the read. He makes a point that I have been ruminating about in a number of posts recently (here and here) – that:

[J]ournalism is about more than dissemination of news; it’s about the creation of shared awareness.

In my posts, I labeled this “shared awareness” the “conventional wisdom.”

Iran’s Gandhian uprising is one of those mesmerizing stories that some of us want to follow minute by minute, like Watergate or the fall of the Berlin Wall. As many have noted, cable TV news has turned out to be useless; it’s little more than talk radio with pictures of the hosts…The best way I’ve found to stay informed has been Andrew Sullivan’s pioneering blog, the Daily Dish…

He aggregates not just the news coming out of Iran but also the domestic debates over what it all means and what the President ought to be doing about it…What really makes the Dish’s coverage of this story so compelling, though, is that its impresario brings to it the same engagé passion that he has brought to the torture revelations and the gay marriage fight. This is a high point of Web journalism. [my emphasis]

After taking it on the chin from the blogosphere for several days, it’s time to applaud CNN. Last weekend, CNN was basically dead air on Iran. This weekend the full power of CNN is on display, in what amounts to a team effort to duplicate what only Andrew Sullivan and Nico Pitney have done from their laptops up to now.

A thought-provoking essay by Liam Julian in the Hoover Institution’s Policy Review explores the relationship between Obama and Reinhold Niebuhr. The essay unsurprisingly concludes that Obama failed to learn the essential lesson of Niebuhr (unsurprising because it appears in the far-right Policy Review) – namely that:

[M]an must act forcefully but humbly and free from naïve expectations.

Julian explains the appeal of this Niebuhrianism as a kind of balancing act:

[Obama] is a liberal, as was Niebuhr, and idealism smolders within even the most sensible liberals. The point is not to suffocate the idealism but to control its flames…

The conservative Julian sees Obama flaming idealistically in his first few months in office because any liberalism is too much for him. But E. J. Dionne – like most liberals – sees Obama as constantly balancing opposites, attempting to control the risks associated with progress while not yielding to a reactionary politics:

That’s the Obama enigma: boldness wrapped in caution rooted in an ambivalent relationship to the status quo. This is why Obama will, by turns, challenge not only his entrenched adversaries but also his natural allies.

The Obama enigma is about balancing opposites. It is an idealistic pragmatism, a conservative liberalism. This constant balancing is inherent in every aspect of the Obama administration. As James Surowiecki observes in the New Yorker with regards to the banking crisis for example:

[T]he Administration is trying to do two things at once. In solving the current crisis, it’s partnering with Wall Street, using the existing system to try to stabilize the economy. But in thinking about the future it’s trying to use hostility to Wall Street to bring about serious changes in the system. This is quite a balancing act: let’s hope the Administration can pull it off.

The fundamental question is whether Krugman is a brilliant hedgehog, an insecure pain in the ass, or - as frequently is the case - both at the same time.

One suspects that Krugman is at least part right – and that Obama and his team realize this. Obama’s response to the financial crisis has been significant – and more than any government response in history – but it is dwarfed by the scale of the crisis, as Krugman is fond of pointing out. Nicholas Lemann in the New Yorker tries to explain why Obama seems to be ignoring Krugman’s advice so far:

[Obama] has to address the crisis, and he is trying to add enough new controls to the system to prevent a repeat of it, but it looks as if his heart is with the big new programs in his budget and with his foreign-policy initiatives. Bank nationalization would drive the stock market down and increase theagita of people with 401(k) plans. Moderate Democrats in Congress would further soften in their support for the Administration’s legislation. The price of bank nationalization might be Obama’s super-ambitious plans in other realms, which, if history is a guide, are likely to pass only in this first year of his Presidency. If they do pass, he will have generated tax revenues from affluent people for social purposes far beyond those of the House’s tax on A.I.G. bonuses, and he will have significantly eased the distress of people who can’t get good health care or education. That is a lot to put at risk.

[I]n the short term, the Geithner plans will work to restart the “old” economy. In this moment before that happens though, pressure from Europe and internal critics as well as a desire to avoid a repeat of this fiasco will enable enough forward-looking, gradualist regulation and legislation to correct the long-term problems with high finance.

Obama’s top budget officials seem confident that they can deal with this immediate difficulty. His larger challenge is to take on the politics of evasion promoted by those who would indefinitely delay health-care reform, energy conservation and the expansion of educational opportunities. Already, his lieutenants are signaling how he will cast the choice: between “taking on the country’s long-term challenges” or just “lowering our sights and muddling through,” as one senior aide put it.

If Geithner is responsible for fixing the current crisis, Peter Orszag is responsible for the long-term outlook – of balancing Obama’s plans to expand government’s role and stabilizing our deficit spending. As Jodi Kantor in the New York Times explained:

Mr. Orszag embodies the administration’s awkward fiscal policy positioning: big spending now, with a promise to scrub the budget of waste and a bet that economic recovery and changes to health care will gradually reduce the deficit.

A lot of pieces need to fall together for this to work. I have confidence in each piece of this plan – but together, the venture seems a bit bolder than is wise.

Perhaps this is a perfect moment in history for Obama’s plan – and Obama has the insight to see this; perhaps Obama is a master of politics who is able to get all of these items through; but it’s hard for me not to be discomfited by the manner in which everything is coming together.

Far from adjusting our expenditures to the needs of the moment, it seems, we tend to wildly overswing, according to our mood. The difference between the provident ant, who cautiously saves up for winter, and the carefree grasshopper, dancing and hopping, is a matter of what Keynes called “animal spirits.” It is better for the common lot if each of us is a hopper (and a shopper) rather than a hoarder. Being a nation of grasshoppers is allied to being a nation of hope.

That bit reminds me of one of the most insightful things written in the midst of the opening panic in September, this blog post by Megan McCardle about some cognitive errors that contributed to the crisis. But then Gopnik takes a very different route than McCardle, bringing the financial crisis to life by invoking a holiday classic:

In “It’s a Wonderful Life,” George Bailey’s Building & Loan is, let us recall, the reckless banker of Bedford Falls, giving what would now be called subprime mortgages to people like Mr. Martini, who would be better off renting. And it is mean, miserable old Mr. Potter who berates Bailey for the practice. “And what does that get us?” Potter asks. “A discontented, lazy rabble instead of a thrifty working class.”

Gopnik sees value in both George Bailey’s and Mr. Potter’s views – with George calling on people to sacrifice for the greater good and Potter acting in his own selfish interest and assuming others will as well. (Another recent column I read – somewhere – pointed out that the dystopia of Pottersville would have survived the industrial decline of upstate New York much better than the Bedford Falls George Bailey protected.)

But for Gopnik – as for Caldwell, and as for most observers – the crisis demonstrates the fickleness of the market itself, and the extent to which it is dominated by what an economist might have once called “animal spirits”:

An economy is not a rational model; it’s an emotional muddle. It depends on how you feel about your neighbors, about next year’s hopes, and about Mr. Martini. Which is why another new President once warned against fearing fear, and why the only thing that can cause us to panic now is panic. There is something faintly encouraging, just barely hopeful, in the human familiarity of the counsel being given by the Keynesian economists. For what they are telling us is just what the parent, in that long bad moment, wishes for the child: Take a deep breath. Look at the ornaments! Don’t cry.

Think calmly and well, upon this whole subject. Nothing valuable can be lost by taking time. If there be an object to hurry any of you, in hot haste, to a step which you would never take deliberately, that object will be frustrated by taking time; but no good object can be frustrated by it.

In a time of crisis, sometimes, much can be lost in the time required for due reflection. But not often. And much more often, hasty decisions lead to unanticipated side effects, often worsening the original condition. Our current media environment punishes daily the patience Lincoln counsels – and rewards the patience, if ever, only on occasion. This has been the case at least since Bill Clinton, as every prominent political figure is forced to respond to scandal after scandal – and in the midst of this, the bigger picture was lost. John McCain’s and Hillary Clinton’s campaign got lost amidst their daily attempt to win the media war and quash brewing scandals. Barack Obama managed to stand apart from the daily grind. He kept his campaign’s course amidst the tumult. This wasn’t always to his benefit – as it led him to take too long to address the Reverend Wright scandal for example- but in the end, his response worked more effectively than a day-to-day attempt to distract and quash the story would have.

This patience and deliberation is Obama’s strength. Now, he must maintain it while he manages his transition and in his administration.

I’ve been hearing that the Detroit bailout won’t be able to pass in this lame duck session of Congress. I hope this is true – because I think a smart rescue plan for Detroit will work better than the current proposal for a hasty bailout. We need to ensure that this bill doesn’t succeed just because – as George Will pointed out – it follows “the supreme law of the land…the principle of concentrated benefits and dispersed costs.”

Yet at the same time, I am not quite as cavalier as many others who have suggested we let these companies simply fail. It may be just – but it is not prudent in this financial climate. In a just world, certainly, Lehman Brothers would have failed – but if it were prudently preserved, this financial crisis may not have been precipitated. Can we risk letting these companies fail now? I don’t believe we can, so we need some kind of rescue plan.

But this rescue plan should be crafted to avoid the exact moral hazard that accompanies any help to an ailing industry. The plan should be punitive towards the management of these companies. It should not prop up the companies directly. My thought is that Obama could propose some Tennessee Valley Authority type project for Detroit – in which the government could offer contracts for green industry jobs in the area – specifically attempting to utilize many of the structures and factories and workers in the area. They should allow any company to apply for these contracts – and structure it in such a way that they could attempt to buy up the necessary facilities after applying.

The goal of this legislation should not be to prop up General Motors, Chrysler, and Ford – but to rejuvenate the car industry in the area and to utilize as much of the infrastructure and employees already built in the area.

This legislation will not be able to be crafted and debated in the next week. This will need a new Congress and a new president.

There are many troublesome paths that can be taken here. To choose the least bad will require patience and deliberation. Which is why this matter must wait until after January 20th.